India is set establish a coal regulatory authority in order to monitor the pricing and supply of the fuel in the country.
The plan, agreed by the cabinet, is pending Parliament approval. It aims to liberalize the sector which is dominated by state-owned Coal India.
The authority will outline methods of testing to determine quality of coal, oversee and implement mines’ closure as well as set pricing principles and methodologies for pricing.
It will also monitor coal supplies from Coal India, and will oversee the progress of state-run and private companies in producing coal under state allocated mining licenses.
Under the proposal, a fund called ‘The Coal Regulatory Authority Fund’ will be created and all grants, fee and charges received by the regulator will be credited to the fund.